11:06 | 23/10/2017 Companies
The State Capital Investment Corporation (SCIC) organised a roadshow in Ho Chi Minh City on October 18 to introduce opportunities from the offloading of its 3.33% stake at the Vietnam Dairy Products Joint Stock Company (Vinamilk).
The stake to be sold is equivalent to more than 48.3 million shares. However, investors have to wait until November 1 to know the shares’ starting price.
Compared to the previous sale, the upcoming auction, slated for November 10 at the HCM Stock Exchange, is more open to foreign investors who can make deposits in the US dollar, but these deposits will have to be converted into Vietnamese dong if they win the auction.
Nguyen Duc Chi, Chairman of the SCIC member council, said if this auction is successful, the State will hold only 36% of Vinamilk’s charter capital.
At the first auction last December, the SCIC offloaded more than 130 million shares in the dairy firm, but sold only 60% of them.
Two similar roadshows to popularise the auction are scheduled to be held in Singapore and Hong Kong in the time ahead.
As of September 2017, Vinamilk had made up 57.8% of the dairy market share in Vietnam. It is set to produce 2.8 million tonnes of products of all kinds by 2021, up 70% from 2016. It also targets VND80 trillion (US$3.5 billion) in revenue by that year.